Introduction to Forex

What is Forex:

In order to understand the meaning of forex you should understand the meaning of stock market first,
 Stock Market  is a commercial market has a lot of traffickers, the most important of these traders are investors, banks, investment funds, brokerage firms and speculators, and there are many, many things which are traded according to the type of stock, there is a stock exchange and bonds (which are the exchange of stocks and bonds) and commodity exchanges (such as wheat and oil), and the stock exchange in which they are buying and selling major currencies
So is Forex: Trading foreign exchange market by buying one currency and selling another against it which is short for Foreign Exchange (which means the exchange of foreign currencies)
For example, where to buy the U.S. dollar to pay the single European currency (Euro), or vice versa any purchase to pay the U.S. dollar Euro interview.
Or buy the U.S. dollar to pay the Japanese yen, or vice versa.
Or buy the U.S. dollar to pay the pound sterling, or vice versa.
Are obtained profit exploiting nuances between the prices of currencies, the difference is simple in most of the time, but it can turn into huge profits when they are buying and selling large amounts of money, using the leverage provided by the brokerage firms of up to 1: 400 (will be explained later)

The forex market is the largest financial market in the world with an average daily circulation of more than 2 trillion (2000 billion U.S. dollars)
In contrast to other financial markets, the foreign exchange market has no physical location or central exchange. The Forex market operates 24 hours a day through an electronic network of banks, corporations and individual traders. Forex trading begins each day in Sydney, then moves to Tokyo, followed by London and then New York

Who are the participants in this market?

  1 - international banks: The banks, the largest and most important players in the arena of global currency trading. Understanding of conducting thousands of transactions daily around the clock, they exchange among themselves, or with ordinary Albrookr Aoualemsttmaren, through their Permanent Representatives in this area. It is no secret that the greatest influence in moving the market and identify and exclusively in the hands of major global banks, as the daily transactions of billions of dollars.

  2 - central banks: Central banks are transactions in this market commissioned by the government, a move often to influence the course of the direction taken by their own currencies, according to the interest that is consistent with financial policies, and therefore protect its economic interests.

3 - investment funds: It was due mostly to institutional investors or pension funds or insurance companies, interfere in the market, according to the dictates of their interests.

4 - Forex Trading clients: These are the important permanent link between buyers and sellers. In other words, they move on the one hand as intermediaries between the various banks, on the other hand between the banks and private investors. For their work and see them blow for this commission.

5 - Independent people: We are those ordinary people who make huge daily turnover of currency to finance their trips planned, or to secure access to their salary, or retirement, etc..

Today, after the revolution introduced by the online operations of global communications, and after successive collapses in the stock markets, is growing little by little the role of independent dealers who have modest amounts of money in buying and selling daily fast (speculators) growing influence and grow in the foreign exchange market,
Is profitable when changing the prices of those currencies, you buy the euro, for example $ 1 has increased the price became $ 1 and fifteen cents, you get the difference as profit, and this will not need the capital is relatively large, because the brokerage companies provide you with leverage of up to 100 times your capital or 400 times your capital